Explain the trade-off between purchasing a durable good now versus later.

in part due to interviewing methods that check the inter-temporal consistency of responses, ... intertemporal budget constraint of households and asked ... ... Intertemporal Budget Constraint (GIBC). Now let's suppose that the only kind of expenditures the government engages in are transfers, so that Xt simply ... ... intertemporal budget constraint considered in a Bewley economy (with a single asset). We also show parameterizations of our model in which we can obtain a ... Sep 6, 2022 ... This expression represents the intertemporal budget constraint. It says that the present discounted value of the endowment plus the initial ... It does not respect intertemporal budget constraints and therefore cannot be microfounded in a dynamic model. It ignores the downward pressure on consumption ... May 3, 2011 ... Because of the government's intertemporal budget constraint, Gt will have to be compensated by taxes, either now or in the future, and the ... Same as with Labor Supply, maximizing utility in the context of intertemporal choices is IDEN-. TICAL to what we've been doing, just with a different budget ... Aug 13, 2018 ... There we "compact" the constraint into one, so here they are outside the sum and the intertemporal discounting, with the understanding that the ... Try adjusting the two interest rates (for borrowing and saving). Note that each affects one portion of the budget constraint: the rate for borrowing affects the ... Bt ≥ −. ¯. B or Ct ≤ Wt. Intertemporal budget constraints. • Relate the borrowing constraint to ability to pay. • A complete-markets notion. • Firm: market ...